Budget 2013: Proposals for MSME sector will help them grow, says K H Muniyappa
Budget proposal to continue benefits to small units for 3 years even after they graduate to a higher category will encourage more units: K H Muniyappa.
NEW DELHI: The Budget proposal to continue benefits to small units for three years even after they graduate to a higher category will encourage more units to grow further, Minister of State (Independent Charge) for MSME K H Muniyappa said today.
Welcoming the announcements made by Finance Minister P Chidambaram, he said, the number of industries which grow are minimum as they apprehend that they would be loosing the benefits or preferences associated with staying small or medium.
"I am really happy that the this fact has been recognised by the Finance Minister as this proposal would encourage more and more Micro, Small and Medium Enterprises (MSMEs) to mature and grow further," Muniyappa said.
The MSME Ministry provides a number of non-tax benefits to the sector, including Market Development Assistance (MDA) scheme and Design Clinics Scheme.
Industry experts said the proposal is significant for the MSMEs who would be supplying goods and equipment to the retail sector.
On doubling the Small Industries Development Bank of India (SIDBI) re-financing facility allocation to Rs 10,000 crore during 2013-14, Muniyappa said, SIDBI plays a vital role for the development of MSME sector and enhancing the refinancing capacity of SIDBI will provide greater support to the sector.
The MSME sector employs over 60 million people in about 2.61 crore units. It contributes about 40 per cent to the country's total exports and about 45 per cent to the manufacturing activities.